Revealed: average annual Dubai apartment rent rises to $37,500
By Staff writer arabianbusiness
Wednesday, 17 February 2016 2:10 PM
The average annual apartment rent in Dubai across all bedroom categories rose to just under AED138,000 ($37,572) in January, according to a new report.
The rental value was 3 percent higher than the average apartment rent of AED134,000 at the end of December 2015, real estate website Bayut.com said.
In Abu Dhabi, average apartment rents fell 5 percent down from a December average of AED141,000 to AED135,000 in January.
Its latest report on the UAE property markets said that localities offering affordable rental options are fast gaining popularity among tenants.
“The shift is only natural when a large number of middle- and low-income individuals and households are making their way to the city owing to unabated development that keeps churning out jobs. The city has a vast population of labour from South and Far East Asian countries that fall in the middle-tier income groups, thus spurring demand for affordable housing units,” Bayut said.
In January, Bayut.com noted Dubai apartment rents declining in certain bed groups while increasing in others.
It added that as the prices in Dubai’s real estate market have been experiencing declines over the last year while rentshave remained robust, the return or yields for investors in the apartment category have become highly attractive.
On average, apartment yields across Dubai were estimated at a little over 6 percent, although the yields go up to 10 percent depending on location and quality of projects, Bayut added.
In its month-on-month study, Bayut found that average annual rents for studio apartments were about AED59,000, a negligible 1 percent decrease compared to December 2015.
One-bed apartments were being rented for an average of AED97,000 in January, registering a 0.8 percent decrease, while two-bed and three-bed apartments posted 0.1 percent and 2.2 percent increases with average annual rents of AED151,000 and AED211,000 respectively.
The four+ bed category saw a rental decline of 2.2 percent in January, down to an average of AED330,000 from AED337,000 in December 2015.
According to Bayut.com’s search trends, Dubai Marina remained the most popular locality for renting apartments in Dubai, followed by Jumeirah Lakes Towers. Bur Dubai, Downtown Dubai and Business Bay rounded out the list of top five localities for renting apartments in January.
Bauyt said in its report: “Dubai and Abu Dhabi will continue to be the regional business and innovation hubs and keep attracting human capital from across the world, helping their realty sectors with a constant demand and impetus to keep on building.”